S&P 500 Futures flirt with record high above 3,650 even as market optimism fizzles


  • S&P 500 Futures stays mildly, up for the fourth day in a row.
  • US-China tussle, mixed clues on virus and vaccine probe earlier risk-on mood.
  • US stimulus, Brexit headlines confuse markets amid a light calendar.
  • US NFP awaited, risk news to keep the driver’s seat.

S&P 500 Futures gains eight points, or 0.22% intraday, to 3,672.50 during the initial hour of Tokyo trading. In doing so, the risk barometer nears the record high of 3,681.62 marked the previous day.

Chatters concerning the US coronavirus (COVID-19) stimulus package and the covid vaccine optimism have helped the US equity derivative to refresh the all-time high on Thursday. However, following the rejection of the covid aid package by US Senate Majority Leader Mitch McConnell joins the news of the Pfizer-BioNTech duo’s supply challenge to probe the risks.

Also on the negative side were the updates that the US confirms four companies blacklisted due to the possible links with the Chinese military. Additionally, the US slashing of China's Communist Party members’ visas from 10 years to 1 month and US Director of National Intelligence John Ratcliffe’s tough stand on Beijing also dim the previous optimism.

On the positive side is the news that the US Department of Justice is in talks with the Huawei Finance Chief Meng Wanzhou to allow her to return to China if she agrees to some wrongdoing. Further, CNN’s comments that US President-elect Joe Biden has a slightly constructive view over the Sino-American tussle also keep the risks positive.

Though, fears that the covid numbers from the US are rising by leaps and bounds as well as expectations of a no-deal Brexit challenge the market’s trading sentiment.

As a result, stocks in Asia-Pacific trade mixed while the US 10-year Treasury yields drop 1.1 basis points (bps) to 0.91% by press time.

While fresh news concerning the aforementioned risk catalysts can keep entertaining the global market players, November’s employment report for the US will also be the key to watch amid broad US dollar weakness.

Read: Nonfarm Payrolls Preview: Another dollar’s disappointment underway

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